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SUNWAY REIT

Financial Results

3rd Quarter Ended

31 March 2015

(FYE 30 June 2015)

Announcement Date:

29 April 2015

Driving values through sustainable growth

DISCLAIMER

This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the

purchase or sale of any security of Sunway Real Estate Investment Trust (“Sunway REIT”) and no part of it shall form the basis of, or be

relied on in connection with, any contract, commitment or investment decision whatsoever. The information contained in this presentation

is strictly private and confidential and is being provided to you solely for your information. This presentation may not be distributed or

disclosed to any other person and may not be reproduced in any form, whole or in part.

This presentation is not intended for distribution, publication or use in the United States. Neither this document nor any part or copy of it

may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States.

Sunway REIT has not registered and does not intend to register any securities under the U.S. Securities Act of 1933 (the “Securities Act”).

Accordingly, any offer of securities of Sunway REIT is being made only outside the United States pursuant to Regulation S under the

Securities Act. You represent and agree that you are located outside the United States and you are permitted under the laws of your

jurisdiction to participate in any offering of securities of Sunway REIT.

This presentation may contain forward looking statements which are not subject to change due to a number of risks, uncertainties and

assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions; interest rate

trends; cost of capital and capital availability including availability of financing in the amounts and on the terms necessary to support future

business; availability of real estate properties; competition from other companies; changes in operating expenses including employee

wages, benefits and training and property expenses; and regulatory and public policy changes. You are cautioned not to place undue

reliance on these forward looking statements which are based on Management’s current view of future events. These forward looking

statements speak only as at the date of which they are made and none of Sunway REIT, its trustee, any of its or their respective agents,

employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any forward looking statement

contained herein to reflect any change in circumstances, conditions, events or expectations upon which any such forward looking

statement is based. Past performance is not necessarily indicative of its future performance.

This presentation does not constitute an offering circular or a prospectus in while or in part. The information contained in this presentation

is provided as at the date of this presentation and is subject to change without notice. No representation or warranty, express or implied, is

made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any projections,

estimates, targets and opinions, contained herein. Accordingly, non of Sunway REIT, its trustee, officers or employees accept any liability,

in negligence or otherwise, whatsoever arising directly or indirectly from the use of this presentation.

2

Driving values through sustainable growth 3

Table of Contents

1. Financial Highlights & Key Updates

2. 3Q 2015 Financial Results

3. 3Q 2015 Portfolio Performance

4. 3Q 2015 Property Performance

5. Market Outlook

6. Investor Relations


1. Financial Highlights & Key Updates


Dividend Distribution Details

Distribution Period

Distribution per Unit (DPU) (sen)

Notice of Entitlement

Ex-Dividend Date

Book Closure Date

Payment Date

18 May 2015

2 June 2015

1 January 2015 - 31 March 2015

2.13

29 April 2015

14 May 2015

5

Distribution Details

1 Proposed income distribution for 3Q 2015 of 2.13 sen per unit (comprising taxable and non-taxable/tax exempt amount of 1.79 sen and 0.34

sen per unit respectively).

1


Financial Highlights

Highlights 3Q 2015 3Q 2014 Change %

No. of Properties 14 12 16.7%

Property Value (RM'billion) 5.846 5.253 11.3%

No. of Units in Circulation 2,935,569,800 2,926,332,700 0.3%

Unit Price as at 31 Mar (RM) 1.57 1.36 15.4%

Market Capitalisation (RM'billion) 4.609 3.980 15.8%

Net Asset Value (NAV) per unit (RM)

(After income distribution)1.2337 1.1787 4.7%

Premium to NAV 27.3% 15.4% 11.9%

Earnings Per Unit (EPU) (sen) 1.93 2.00 -3.6%

Distribution Per Unit (DPU) (sen) 2.13 2.10 1.4%

Annualised Distribution Yield

(Based on market price as at 31 Mar)5.7% 6.2% -0.5%

Management Expense Ratio

(After income distribution)0.84% 0.80% 0.0%

YTD total return 14.7% -5.5% 20.2%

Gearing 35.1% 32.3% 2.8%

% of fixed rate borrowings 89.5% 76.7% 12.8%

1 Lower EPU due to unrealized fair value loss on mark-to-market of interest rate swap.

1


86.5 86.7 83.2

256.4

77.2 84.4 80.6

242.2

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

1Q 2Q 3Q YTD

2015 2014

113.8 114.0 110.7

338.5

100.2 110.3 108.1

318.6

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

1Q 2Q 3Q YTD

2015 2014

7

Financial Highlights (Cont’d)

2.4% 3.2%

1 Gross revenue increased 2.4% or RM2.6 million contributed substantially by the retail segment but partially offset by lower performance by hotel and office

segments.

2 Net Property Income increased 3.2% or RM2.6 million contributed by higher gross revenue.

1 2

Gross Revenue (RM'm) Net Property Income (RM'm)


2.28 2.27 2.13

6.68

2.00 2.23 2.10

6.33

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1Q 2Q 3Q YTD

2015 2014

DPU (sen)

63.5 63.0 58.9

185.4

55.4 62.0 58.5

175.9

-

50.0

100.0

150.0

200.0

1Q 2Q 3Q YTD

2015 2014

Profit Before Tax (Realised) (RM'm)

8

5.0%

Financial Highlights (Cont’d)

0.7% 1.4%

1 PBT(Realised) increased by 0.7% or RM0.4 million due to higher net property income partially reduced by higher interest expense which will be explained on

page 11.

2 DPU increased by 1.4% or 0.03 sen in line with the marginally higher realized net profit for the period.

1 2


12.7%

Material Litigation

Case: Sunway Putra’s (formerly known as Sunway Putra

Place) Assessment for Damages

Defendant: Metroplex Holdings Sdn Bhd (“MHSB”)

After the Federal Court has on 20 February 2012 dismissed MHSB’s application for leave to appeal,

RHB Trustees Berhad (as trustee of Sunway REIT) ("Trustee") and Sunway REIT Management Sdn Bhd

("Manager") proceeded with the enforcement of the remaining parts of the Orders made by the High

Court that have not been enforced, inter alia, the damages awarded to the Trustee. The damages are

subject to an assessment of damages to be undertaken by the High Court.

On 27 August 2014, the court awarded a total of RM3,184,071.67 in damages to the Trustee out of the

total claim of RM6.2 million to RM6.9 million.

However, MHSB filed an appeal to the judge in chambers on the decision given above. A decision was

delivered by the learned judge on 22 December 2014 in favour of the Trustee and the REIT Manager and

the appeal was dismissed with costs. MHSB had on 9 January 2015 filed a notice of appeal in the Court

of Appeal to appeal against the decision delivered on 22 December 2014. The hearing date of the appeal

is fixed on 25 June 2015.

Sunway REIT's lawyers will proceed to file the application for the release of the money amounting to

RM6,189,000 in the joint stakeholders’ account (being the loss of income due to Sunway REIT) when a

full determination of the case on assessment of damages has been delivered by the court.


18.1%

2. 3Q 2015 Financial Results


3Q 2015 3Q 2014 Change YTD 2015 YTD 2014 Change

RM'000 RM'000 % RM'000 RM'000 %

Gross revenue 110,709 108,082 2.4% 338,517 318,571 6.3%

Less : Property operating expenses (27,532) (27,459) 0.3% (82,111) (76,417) 7.5%

Net property income 83,177 80,623 3.2% 256,406 242,154 5.9%

Other income 712 457 55.8% 2,611 1,643 58.9%

Manager's fees (6,899) (6,385) 8.1% (20,777) (19,275) 7.8%

Trustee's fees and other trust expenses (2,608) (534) 388.4% (3,987) (1,425) 179.8%

Finance costs (17,564) (15,681) 12.0% (50,716) (47,183) 7.5%

Profit for the period/year 56,818 58,480 -2.8% 183,537 175,914 4.3%

Total comprehensive income for the period/year

comprises the following:

Realised

- 11 assets excluding Sunway Putra 64,752 60,868 6.4% 193,888 179,772 7.9%

- Sunway Putra (5,829) (2,406) -142.3% (8,536) (3,910) -118.3%

Total realised 58,923 58,462 0.8% 185,352 175,862 5.4%

Unrealised (2,105) 18 -11794.4% (1,815) 52 -3590.4%

Total net profit for the period/year 56,818 58,480 -2.8% 183,537 175,914 4.3%

No. of Units in circulation (million) 2,936 2,926 0.3% 2,936 2,926 0.3%

EPU (sen)

- realised 2.00 2.00 -0.2% 6.32 6.02 4.9%

- unrealised (0.07) - 100.0% (0.06) - 100.0%

Total EPU 1.93 2.00 -3.7% 6.26 6.02 3.9%

Proposed/declared distribution 62,528 61,453 1.7% 195,939 185,080 5.9%

Proposed/declared distribution per unit (sen) 2.13 2.10 1.4% 6.68 6.33 5.5%

11

Statement of Comprehensive Income – Consolidated

1 YTD 3Q 2015 vs YTD 3Q 2014 - Property operating expenses was higher in YTD 3Q 2015 mainly due to higher general maintenance expenses to upkeep Sunway Pyramid Shopping

Mall as well as higher provision for doubtful debts. Sunway Putra Mall incurred higher pre-opening expenses such as staff costs. The higher property operating expenses was partially

off-set by the vacancy allowance granted by the local authority for the assessment of Sunway Putra (formerly known as Sunway Putra Place) and reversal of overprovision for

assessment for KL properties pursuant to confirmation of final increase in 1Q 2015.

2 Higher other income was mainly due to higher deposit rates.

3 3Q 2015 vs 3Q 2014 – Other trust expenses was higher in 3Q 2015 mainly due to unrealised fair value loss on mark-to-market of interest rate swap of RM1.9m.

4 Finance costs was higher mainly due to additional loan drawn down to fund the ongoing capital expenditure plans and the acquisition of Sunway Hotel Georgetown and Wisma Sunway.

The increase in Overnight Policy Rate (OPR) by 25 bps in July 2014 which resulted in higher interest expense on the floating rate borrowings also contributed to the higher interest

expense.

5 3Q 2015 vs 3Q 2014 – Higher realised net loss mainly due to lower revenue contribution by Sunway Putra Hotel and Sunway Putra Tower, higher pre-opening expenses of Sunway

Putra Mall and higher finance cost for the on going major refurbishment.

3

4

5

2

1

4

2

5


Statement of Financial Position – Consolidated

31.03.15 31.12.14 30.09.14 30.06.14

RM'000 RM'000 RM'000 RM'000

ASSETS

Non-current assets

Plant and equipment 4,200 3,737 3,354 3,039

Investment properties 5,846,119 5,652,110 5,558,894 5,520,000

5,850,319 5,655,847 5,562,248 5,523,039

Current assets

Receivables, deposits and prepayments 14,691 34,193 20,399 16,361

Cash and bank balances 77,438 64,639 80,597 54,607

Derivative 6,927 39,299 17,908 12,484

99,056 138,131 118,904 83,452

5,949,375 5,793,978 5,681,152 5,606,491

EQUITY AND LIABILITIES

Unitholders' funds

Unitholders' capital 2,713,007 2,709,514 2,706,068 2,702,788

Undistributed income 971,194 983,832 988,605 985,283

3,684,201 3,693,346 3,694,673 3,688,071

Non-current liabilities

Borrowings 1,370,350 1,000,000 1,000,000 1,000,000

Long term liabilities 70,944 66,846 63,218 60,279

Derivative 1,865 - - -

1,443,159 1,066,846 1,063,218 1,060,279

Current liabilities

Borrowings 718,283 924,267 815,440 742,042

Trade and other payables 103,732 109,519 107,821 116,099

822,015 1,033,786 923,261 858,141

5,949,375 5,793,978 5,681,152 5,606,491

1 Derivative due to unrealized gain on cross currency swap transaction (further explained on page 13).

2 Increase in long term liabilities mainly due to refundable deposits received from tenants in Sunway Putra Mall.

3 Derivative financial instrument due to unrealized loss on interest rate swap transaction (further explained on page 13).

1

2

3


Facility Limit

RM'mil RM'mil

Term Loan 360.9 370.3

Commercial Papers (CP) /

Revolving Loans (RL) 900.0 718.4

Unrated MTNs 1,000.0 1,000.0

Total Gross Borrowings 2,088.7

Discount on Commercial Papers (0.1)

Total Borrowings at carrying amount 2,088.6

RM'mil

Classification of Borrowings:

Current (due within 1 year) 718.4

Non-current (due after 1 year) 1,370.3

Total Gross Borrowings 2,088.7

Average Cost of Debt 3.91%

Average Maturity Period (Years) 1.9

Debt Service Cover Ratio (DSCR) 5.1

Gearing Ratio 35.1%

1

500.0 370.3 400.0

200.0

400.0

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Monthly rollover Due Feb 2018 Due Oct 2017 Due Mar 2018 Due Apr 2018

Loan Maturity Profile (RM'mil)

Floating rate Fixed rate

218.4

13

Debt Profile

1 Includes unrealised forex loss of RM9.4 million. The USD100m term loan which matured on 4 February 2015 has been refinanced with the same facility for 3 years maturing on 5

February 2018 and fully hedged with 1-year cross currency swap contract.

2 The current limit of RM900.0 million can be increased to RM1.25 billion in April 2015 and can subsequently be increased to RM1.60 billion up to expiry of the programme in April 2019.

3 Sunway REIT has locked in RM500.0 million 3-year IRS at 3.81% (blended) to hedge against increase in CP interest rate.

4 No refinancing risk as the CP Programme is fully underwritten by a local financial institution for the entire duration of the programme.

4

2

3

Current (due within

1 year)

34%Non-

current (due after

1 year)66%

Classification of Borrowings

Fixed rate90%

Floating rate10%

Fixed versus Floating rate mix

1


3. 3Q 2015 Portfolio Performance


72.9

10.6

1.2 0.2

6.3 3.6

0.9 0.7 0.6 4.5 2.9 1.0 0.1

5.2

66.7

9.6

1.2 0.1

7.8 5.1

1.0 1.0 -4.5 3.9 2.3

-

4.9

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Sunway Pyramid

Sunway Carnival

SCI Hypermarket

Sunway Putra Mall

Sunway Resort Hotel

& Spa

Pyramid Tower Hotel

Sunway Hotel Seberang

Jaya

Sunway Putra Hotel

Sunway Hotel Georgetown

Menara Sunway

Sunway Tower

Sunway Putra Tower

Wisma Sunway

Sunway Medical Centre

15

3Q 2015 Revenue Contribution

Retail Hotel Office Others

1 2 4 5 6 7

Please refer to next page for explanatory notes.

3 3 8

3Q 2015 (RM'mil) 110.7

3Q 2014 (RM'mil) 108.1

67


3Q 2015 Revenue Contribution (Cont’d)

Explanation:

16

*

1 Sunway Pyramid – Sunway Pyramid Shopping Mall registered strong gross revenue growth of 9.3% or RM6.2 million for 3Q 2015 compared to 3Q 2014

primarily attributable to the higher average net rent per sq. ft. and higher average occupancy rate. The improved revenue of this shopping mall was also

due to an increase in service and promotion charges with effect from June 2014 (4Q 2014).

2 Sunway Carnival – Sunway Carnival Shopping Mall achieved a steady growth in gross revenue by 10.4% or RM1.0 million, mainly attributable to an

increase in service and promotion charges with effect from June 2014. In addition, average occupancy rate was higher at 97.7% for YTD 3Q 2015

compared to 92.4% for YTD 3Q 2014 due to commencement of a tenancy in July 2014 for approximately 44,000 sq.ft which was vacant since July

2013.

3 Sunway Resort Hotel & Spa and Pyramid Tower Hotel – The revenue of Sunway Resort Hotel & Spa (SRHS) and Pyramid Tower Hotel (PTH) were

lower by 19.2% or RM1.5 million and 29.4% or RM1.5 million respectively for 3Q 2015 compared to 3Q 2014. Revenue from these hotels were

primarily affected by the softer business and consumer sentiment ahead of introduction of GST. Rental contribution for both hotels were also lower in

the current quarter due to closure of F&B outlets and higher room operating expenses to enhance guests service level. In addition, SRHS and PTH

enjoyed higher average occupancy rates in the preceding year due to one-off MICE business and supported by aggressive tactical promotional

activities.

4 Sunway Hotel Seberang Jaya - Revenue from Sunway Hotel Seberang Jaya was lower by 10.0% or RM0.1 million in 3Q 2015 compared to 3Q 2014 on

the back of exceptionally soft market demand during the quarter and competition from newly opened hotels.

5 Sunway Putra Hotel – The performance of Sunway Putra Hotel continues to be adversely affected by the ongoing major refurbishment works at the

adjoining Sunway Putra Mall since May 2013 and the hotel's own refurbishment. Average occupancy rate for the current quarter stood at 22.3%

compared to 36.1% in 3Q 2014, on the back of closure of some of the key hotel facilities for refurbishment.

6 Sunway Hotel Georgetown and Wisma Sunway – Acquired on 28 January 2015 and 23 March 2015 respectively.

7 Sunway Tower and Sunway Putra Tower - Average occupancy of Sunway Tower and Sunway Putra Tower declined to 67.6% and 60.8% respectively in

the current quarter compared to 85.0% and 73.9% respectively in the preceding year corresponding quarter. The anchor tenant at Sunway Tower had

surrendered 34,000 sq. ft. in 2Q 2015 whilst the anchor tenant at Sunway Putra Tower, which occupied 143,000 sq. ft., moved out in December 2014.

This resulted in revenue from Sunway Tower to be lower by 25.6% or RM1.0 million and for Sunway Putra Tower lower by 56.5% or RM1.3 million in

the current quarter.

8 Sunway Medical Centre – Contributed RM5.2 million of revenue 3Q 2015, an increase of 6.1% compared to 3Q 2014 due to rental reversion in

accordance with the Master Lease Agreement and additional income contribution from completion of the asset enhancement in 1Q 2015.

* Calculation of % varies marginally compared to 3Q 2015 Quarterly Announcement Pack in Bursa Malaysia’s website due to rounding difference.


3Q 2015 Revenue Contribution (Cont’d)

Sunway Pyramid65.8%

Sunway Carnival9.6%SCI Hypermarket

1.1%

Sunway Putra Mall

0.2%

Sunway Resort Hotel & Spa5.7%

Pyramid Tower Hotel

3.3%Sunway Hotel Seberang Jaya

0.8%

Sunway Putra Hotel

0.6%


0.5%

Menara Sunway4.1%

Sunway Tower2.6%

Sunway Putra Tower

0.9%

Wisma Sunway0.1%


4.7%

By property

Retail76.7%

Hotel10.9%

Office7.7%

Others4.7%

By sector

Selangor83.7%

Ipoh 1.1%

Penang10.9%

Kuala Lumpur

4.3%

By location


211.8

31.5

3.7 0.4

25.0 14.2

3.6 3.2 0.6 13.4 9.7 6.1

0.1

15.2

191.7

27.1

3.4 0.4

25.5 15.7

3.4 4.6 -13.2 12.2 7.0

-

14.4

-

50.0

100.0

150.0

200.0

250.0

Sunway Pyramid

Sunway Carnival

SCI Hypermarket

Sunway Putra Mall

Sunway Resort Hotel

& Spa

Pyramid Tower Hotel

Sunway Hotel Seberang

Jaya

Sunway Putra Hotel


Menara Sunway

Sunway Tower

Sunway Putra Tower

Wisma Sunway


YTD 3Q 2015 Revenue Contribution


1


3

18

31 2 1 1 1 1

YTD 3Q 2015 (RM'mil) 338.5

YTD 3Q 2014 (RM'mil) 318.6

4 1 1


1 Sunway Pyramid, Sunway Carnival, Sunway Putra Hotel, Sunway Hotel Georgetown, Sunway Tower, Sunway Putra Tower, Wisma Sunway and

Sunway Medical Center – As per explanation on page 16.

2 SCI Hypermarket – Higher revenue due to rental reversion.

3 Sunway Resort Hotel & Spa and Pyramid Tower Hotel - The revenue of Sunway Resort Hotel & Spa (SRHS) and Pyramid Tower Hotel (PTH) were both

lower by 2.0% or RM0.5 million, and 9.6% or RM1.5 million respectively due to lower performance reported in 2Q 2015 and 3Q 2015.

4 Sunway Hotel Seberang Jaya – Achieved a modest revenue growth of 5.9% or RM0.2 million for YTD 3Q 2015 compared to YTD 3Q 2014 due to a

higher average daily rate and average occupancy rates, post completion of refurbishment in 4Q 2013.

YTD 3Q 2015 Revenue Contribution (Cont’d)

Explanation:

19

*

* Calculation of % varies marginally compared to 3Q 2015 Quarterly Announcement Pack in Bursa Malaysia’s website due to rounding difference.


YTD 3Q 2015 Revenue Contribution (Cont’d)

Sunway Pyramid62.5%

Sunway Carnival9.3%

SCI Hypermarket1.1%

Sunway Putra Mall

0.1%

Sunway Resort Hotel & Spa7.4%

Pyramid Tower Hotel

4.2%Sunway Hotel Seberang Jaya

1.1%

Sunway Putra Hotel

0.9%


0.2%

Menara Sunway4.0%

Sunway Tower2.9%

Sunway Putra Tower

1.8%Wisma Sunway

0.0%


4.5%

By property

Retail73.0%

Hotel13.8%

Office8.7%

Others4.5%

By sector

Selangor82.7%

Ipoh 1.1% Penang

10.5%

Kuala Lumpur

5.7%

By location


SunwayPyramid

SunwayCarnival

SCIHypermarket

SunwayPutra Mall

SunwayResort Hotel

& Spa

PyramidTower Hotel

Sunway HotelSeberang

Jaya

SunwayPutra Hotel

Sunway HotelGeorgetown

MenaraSunway

SunwayTower

SunwayPutra Tower

WismaSunway

SunwayMedicalCentre

3Q 2015 RM'million 56.4 6.7 1.2 (2.1) 5.9 3.5 0.8 0.3 0.5 3.2 1.6 (0.1) 0.1 5.2

3Q 2014 RM'million 49.3 6.0 1.1 (1.5) 7.6 4.9 1.0 0.3 - 3.2 2.4 1.4 - 4.9

3Q 2015 NPI margin % 77.4% 63.2% 100.0% -1050.0% 93.7% 97.2% 88.9% 42.9% 83.3% 71.1% 55.2% -10.0% 100.0% 100.0%

3Q 2014 NPI margin (%) 73.9% 62.5% 91.7% -1500.0% 97.4% 96.1% 100.0% 30.0% 0.0% 71.1% 61.5% 60.9% 0.0% 100.0%

(5.0)

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

21

3Q 2015 NPI Contribution


1 2 11 3 44


4 14 4

NPI Margin

3Q 2015 (RM'mil) 83.2 75.2%

3Q 2014 (RM'mil) 80.6 74.6%

4 1


3Q 2015 NPI Contribution (cont’d)

1 Sunway Pyramid, Sunway Carnival, Sunway Hotel Georgetown, Wisma Sunway and Sunway Medical Center – Higher NPI due to reasons mentioned

on page 16.

2 SCI Hypermarket - Higher NPI due to reasons mentioned on page 19.

3 Sunway Putra Mall – Higher net property loss in 3Q 2015 compared to 3Q 2014 due to higher pre-opening expenses during the quarter under review.

4 Sunway Resort Hotel, Pyramid Tower Hotel, Sunway Hotel Seberang Jaya, Sunway Putra Hotel, Sunway Tower and Sunway Putra Tower – Lower

NPI mainly due to lower revenue as explained on page 16.

Explanation:

22


3Q 2015 NPI Contribution (Cont’d)

Sunway Pyramid66.1%

Sunway Carnival7.8%

SCI Hypermarket1.4%

Sunway Putra Mall

0.0%

Sunway Resort Hotel & Spa

6.9%

Pyramid Tower Hotel

4.1%

Sunway Hotel Seberang Jaya

0.9%

Sunway Putra Hotel

0.4%


0.6%

Menara Sunway3.7%

Sunway Tower1.9% Sunway

Putra Tower0.0%

Wisma Sunway0.1%


6.1%

By property

Retail74.7%

Hotel13.2%

Office5.8%

Others6.3%

By sector

Selangor89.0%

Ipoh 1.4%

Penang9.6%

Kuala Lumpur0.0%

By location*

* It is a net property loss for KL properties.


SunwayPyramid

SunwayCarnival

SCIHypermarke

t

SunwayPutra Mall

SunwayResort

Hotel & Spa

PyramidTower Hotel

SunwayHotel

SeberangJaya

SunwayPutra Hotel

SunwayHotel

Georgetown

MenaraSunway

SunwayTower

SunwayPutra Tower

WismaSunway

SunwayMedicalCentre

YTD 3Q 2015 RM'million 158.3 20.0 3.6 (4.0) 23.8 13.9 3.4 3.0 0.5 9.6 5.9 3.1 0.1 15.2

YTD 3Q 2014 RM'million 142.7 16.9 3.2 (3.1) 24.6 15.5 3.2 3.2 - 9.5 8.1 4.0 - 14.4

YTD 3Q 2015 NPI margin (%) 74.7% 63.5% 97.3% -1000.0% 95.2% 97.9% 94.4% 93.8% 83.3% 71.6% 60.8% 50.8% 100.0% 100.0%

YTD 3Q 2014 NPI margin (%) 74.4% 62.4% 94.1% -775.0% 96.5% 98.7% 94.1% 69.6% 0.0% 72.0% 66.4% 57.1% 0.0% 100.0%

(20.0)

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

24

YTD 3Q 2015 NPI Contribution


1 21 2


2 2 1 1 11 1

NPI Margin

YTD 3Q 2015 (RM'mil) 256.4 75.7%

YTD 3Q 2014 (RM'mil) 242.2 76.0%

3 1


YTD 3Q 2015 NPI Contribution (cont’d)

1 Sunway Pyramid, Sunway Carnival, Sunway Putra Hotel, Sunway Hotel Georgetown, Sunway Tower, Sunway Putra Tower, Wisma Sunway and

Sunway Medical Centre – As per explanation on page 16.

2 SCI Hypermarket, Sunway Resort Hotel & Spa, Pyramid Tower Hotel and Sunway Hotel Seberang Jaya – As per explanation on page 19.

3 Sunway Putra Mall – As per explanation on page 22.

Explanation:

25


YTD 3Q 2015 NPI Contribution (Cont’d)

Sunway Pyramid60.8%

Sunway Carnival7.7%

SCI Hypermarket1.4%

Sunway Putra Mall

0.0%

Sunway Resort Hotel & Spa

9.1%

Pyramid Tower Hotel

5.3%

Sunway Hotel Seberang Jaya

1.3%

Sunway Putra Hotel

1.2%


0.2%

Menara Sunway3.7% Sunway Tower

2.3%

Sunway Putra Tower

1.2% Wisma Sunway0.0%


5.8%

By property

Retail69.6%

Hotel17.2%

Office7.3%

Others5.9%

By sector

Selangor86.4%

Ipoh 1.4% Penang

9.1%

Kuala Lumpur3.1%

By location


0.7%

0.7%

0.8%

0.9%

0.9%

1.1%

1.5%

1.7%

2.2%

2.6%

13.1%

0.0% 5.0% 10.0% 15.0% 20.0%

H & M Retail Sdn Bhd

Padini Dot Com Sdn Bhd

Sunway Management Sdn Bhd

Sunway Integrated Properties Sdn Bhd

Sunway Resort Hotel Sdn Bhd (ConventionCentre)

TGV Cinemas Sdn Bhd

GCH Retail (Malaysia) Sdn Bhd

Aeon Co (M) Bhd

Parkson Corporation Sdn Bhd

Ranhill Worley Parsons Sdn Bhd

Total Top 10 Tenants

6.1%

12.7%

22.0%

53.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

FY2015 FY2016 FY2017 AfterFY2017

RESILIENT INCOME STREAMWell spread-out lease expiry profile and diverse tenant base

WALE 1 as at 31 March 2015– 2.20 years

Projected tenancy expiry of portfolio 2 Top 10 tenants³

Top 10 tenants contribute approximately 13.1% of total revenue

1 Calculated based on gross rental income.2 Calculated using NLA for the Retail and Office Properties

and GFA for the Hotel and Hospital Properties.

(NLA for Sunway Putra Mall has been excluded as the

mall is closed for major refurbishment.)

³ Based on gross rental income for the month of March 2015.

(Exclude Hotel Master Leases, Hospital Master Lease and car park tenancies.)4 Ranhill’s contribution will drop to approximately 1.9% by end-May 2015 when it

gives up another 37,719 sq.ft. of NLA.

27

4


4. 3Q 2015 Property Performance

28


3.6%21.7% 51.9% 19.3% 1.8%

0%

10%

20%

30%

40%

50%

60%

FY2015 FY2016 FY2017 FY2018 Monthlytenancy

Expiring tenancies as % of total NLA

99.3%98.5% 98.6% 98.3% 97.8% 98.1% 97.8%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 YTD3Q15

YTD3Q14

Average occupancy rate

RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL

29

Projected lease expiry scheduleHistorical occupancy rates


37.4%

19.4%4.3%

5.0%

4.3%

7.2%

22.4%

Fashion & Footwear Food & Beverage

Department Store Leisure & Entertainment

Electronics Education & Services

Others

0.9%

0.9%

0.9%

0.9%

1.0%

1.0%

1.1%

1.4%

1.6%

2.2%

11.9%

0% 5% 10% 15%

Pyramid Bowl Sdn Bhd

Elitetrax Marketing Sdn Bhd (Harvey Norman)

J.V Fitness Concepts Sdn Bhd

Peregrine Technology Sdn Bhd (Digital Centre)

H & M Retail Sdn Bhd

Padini Dot Com Sdn Bhd

Sunway Resort Hotel Sdn Bhd (Convention Centre)

TGV Cinemas Sdn Bhd


Aeon Co (M) Bhd


RETAIL PROPERTIES SUNWAY PYRAMID SHOPPING MALL (Cont’d)

Tenant mix Top 10 tenants

Note: Based on gross rental income for the month of March 2015

30


1.9%26.7% 51.0% 7.0% 9.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY2015 FY2016 FY2017 FY2018 Monthlytenancy


93.6%

90.6%91.2%

97.4%

92.0%

97.7%

92.4%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%


YTD3Q14


RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL

Historical occupancy rates Projected lease expiry schedule

Note: Higher occupancy rate was recorded for YTD3Q2015 due to commencement of tenancy for Sam’s Groceria occupying

approximately 44,000 sq.ft in July 2014.

31


1.2%

1.3%

1.3%

1.4%

1.5%

1.6%

2.2%

2.3%

3.1%

8.9%

24.8%

0% 10% 20% 30%

Apex Pal (M) Sdn Bhd

Island Heritage Sdn Bhd

Padini Corporation Sdn Bhd

CYC Sega Leisure World (M) Sdn Bhd

Life Habitat Sdn Bhd

Esprit De Corp (M) Sdn Bhd

Sunway Carnival Convention Centre

Sam's Groceria Sdn Bhd

Eu Yan Sang (1959) Sdn Bhd



26.5%

16.8%

11.2%4.3%

8.9%

9.2%

23.1%

Fashion & Footwear Food & Beverage Departmental Store

Leisure & Entertainment Electronics Education & Services

Others

RETAIL PROPERTIES SUNWAY CARNIVAL SHOPPING MALL (Cont’d)



32


100% 100% 100% 100% 100% 100% 100%

75%

80%

85%

90%

95%

100%


YTD3Q14


RETAIL PROPERTIES SUNCITY IPOH HYPERMARKET

33

Historical occupancy rates

Suncity Ipoh Hypermarket is tenanted to a single tenant, a major hypermarket and retailer chain operating under the “Giant”

brand in Malaysia, Singapore, Indonesia and Brunei Darulsalam. The next renewal for the tenancy is April 2017.


80.9% 81.1%

75.6%

72.4%

83.5%82.1%

77.3%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

1Q 2Q 3Q 4Q

Average occupancy rate (%)

FYE2015 FYE2014

HOSPITALITY PROPERTIES SUNWAY RESORT HOTEL & SPA

Note 1: The hotel properties are under 10-years master leases. The Sunway Resort Hotel & Spa and Pyramid Tower Hotel master lease is expiring in July 2020.

Note 2: The lower average occupancy rate (75.6% in 3Q2015 compared to 82.1% in 3Q2014 is mainly due to softer business and consumer sentiment ahead of

introduction of GST. In the previous year, the hotel enjoyed higher average occupancy rate due to one-off MICE businesses and supported by ongoing

aggressive tactical promotional activities.

Note 3: Customer contribution has been reclassified which translated into higher contribution from leisure segment as compared to corporate segment (66.1% vs

33.9%). Reservations made under Online Travel Agencies (“OTA”) are now classified as leisure instead of corporate to reflect the purpose of travelling.

34

Historical occupancy rate

Corporate 33.9%

Leisure 66.1%

Customer contribution (Room revenue)

66.7%69.4%

76.0%

71.3%

78.8% 79.2% 79.3%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%


YTD3Q14


Avg occupancy rate (%)


HOSPITALITY PROPERTIES PYRAMID TOWER HOTEL

35

Note 1: The hotel properties are under 10-years master leases. The Sunway Resort Hotel & Spa and Pyramid Tower Hotel master

lease is expiring in July 2020.

Note 2: The lower average occupancy rate (73.8% in 3Q2015 vs 82.8% in 3Q2014) was due to the reasons similar to SRHS.

Note 3: Customer contribution has been reclassified which results in more contribution from leisure segment as compared to

corporate segment (53.8% vs 46.2%). The reasons for reclassification is similar to SRHS.


83.7%

92.0%

73.8%76.0%

88.5%

82.8% 82.2%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

1Q 2Q 3Q 4Q


FYE2015 FYE2014

Corporate 46.2%

Leisure 53.8%


81.3% 80.9%83.1%

78.7%

82.4% 83.2% 82.4%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%


YTD3Q14




HOSPITALITY PROPERTIES SUNWAY HOTEL SEBERANG JAYA

Note 1: The hotel properties are under 10-years master leases. The Sunway Hotel Seberang Jaya master lease is expiring in July

2020.

Note 2: Lower average occupancy rate was recorded in 3Q2015 due to soft business and consumer sentiment ahead of

introduction of GST as well as increased competition due to opening of new hotels.

.

36


77.6%75.7%

55.2%57.8%

68.7%

63.2%

81.5%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1Q 2Q 3Q 4Q


FYE2015 FYE2014

Corporate 92.2%

Leisure 7.9%


77.0%80.0%

70.2%

51.6%

67.8% 69.6%

63.2%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 YTD3Q 15YTD3Q 14




HOSPITALITY PROPERTIES SUNWAY HOTEL GEORGETOWN

37


67.4%

83.6%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1Q 2Q 3Q 4Q


FYE2015 FYE2014

Corporate 14.9%

Leisure 85.1%


Note 1: The contribution from Sunway Hotel Georgetown commences on 28 January 2015. The information for 3Q shown above is for the month of February

2015 and March 2015 following the completion of the acquisition of the hotel on 28 January 2015. The historical information (FY2010 to FY2014) is

provided by the vendor, Sunway Berhad.

Note 2: The hotel properties are under 10-years master leases. The Sunway Hotel Georgetown master lease is expiring in January 2025.

Note 3: Lower occupancy recorded from 70.4% in Jun-12 to 54.7% in Jun-13 mainly due to the hotel’s major refurbishment exercise. The refurbishment was

completed in 4Q2013. Post refurbishment, the occupancy recovered and the ADR has also improved as a result of the exercise.

Note 4: Lower average occupancy rate was recorded in 3Q2015 due to the reasons similar to SHSJ.

*

71.8% 70.5% 70.4%

54.7%

82.0%

67.4%

83.6%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 YTD3Q 15YTD3Q 14




HOSPITALITY PROPERTIES SUNWAY PUTRA HOTEL

38


36.4%

31.6%

22.3%

43.8%

51.6%

36.1%38.8%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1Q 2Q 3Q 4Q


FYE2015 FYE2014

Corporate 84.9%

Leisure 15.1%


Note 1: The hotel properties are under 10-years master leases. The Sunway Putra Hotel master lease is expiring in September 2021.

Note 2:The occupancy rate was lower mainly due to the ongoing major refurbishment at the adjoining Sunway Putra Mall and the hotel’s ongoing

refurbishment. The performance was also affected on the back of closure of some of the key hotel facilities. To date, refurbishment of the ballroom

and coffee house are completed as well as 307 rooms of the 618 rooms have been refurbished. The full completion is expected to be in 4QCY2015.

.

59.0% 60.2%

42.6%

30.1%

43.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Jun-12 * Jun-13 Jun-14 YTD3Q 15 YTD3Q 14




97.7%

99.7%98.5% 98.9% 98.8%

97.4%98.8%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%


YTD3Q14


OFFICE PROPERTIES MENARA SUNWAY

39

Note: Average occupancy rate for YTD3Q 2015 is lower at 97.4% (YTD2Q 2014: 98.8%) due to a tenant who did not renew

in July 2014. The asset manager is actively seeking for replacement tenants.


17.4% 74.1%3.8% 2.7%

0%

10%

20%

30%

40%

50%

60%

70%

FY2015 FY2016 FY2017 FY2018



26.4%

23.6%

13.9%

12.2%

6.6%

2.9%

2.9%

1.8%1.8%

7.9%

Management services Property

Communication Construction

Medical Technology

Trading Advertising Agency

Leasing Others

2.9%

2.9%

2.9%

3.5%

6.6%

7.1%

9.3%

13.6%

15.4%

17.4%

81.6%

0% 20% 40% 60% 80% 100%

Sunway Marketing Sdn Bhd

Sunway Computer Services Sdn Bhd

Sunway Quarry Industries Sdn Bhd

Sunway Bhd

Merck Sdn Bhd

Sunway Shared Services Sdn Bhd

Sunway Construction Sdn Bhd

Maxis Mobile Sdn Bhd

Sunway Management Sdn Bhd

Sunway Integrated Properties Sdn Bhd


OFFICE PROPERTIES MENARA SUNWAY (Cont’d)



40


56.60%3.10% 3.70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

FY2015 FY2016 FY2017


95.6%97.0%

93.5%

83.0%84.3%

67.6%

85.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%


YTD3Q14


OFFICE PROPERTIES SUNWAY TOWER

41


Note: The average YTD occupancy is lower as compared to last year same quarter as the anchor tenant has released 34,000sq.ft.

at the end of September 2014. Going forward, the occupancy is expected to further decline to about 50% in 4QFY2015 as

the anchor tenant will be giving up another 37,719sq.ft. of NLA in end May 2015 (deferred from March 2015 as reported in

the previous quarter). The asset manager is actively seeking for replacement tenants.


0.6%

0.7%

0.9%

2.2%

2.2%

2.7%

3.8%

4.0%

6.4%

75.4%

98.9%

0% 20% 40% 60% 80% 100% 120%

Sunway Leisure Services Sdn Bhd

Poliklinik Cahaya Sdn Bhd

San Francisco Coffee Sdn Bhd

R1 International Sdn Bhd

Zhuojian Associates S/B

WRP Asia Pacific Sdn Bhd

ACCA Malaysia Sdn Bhd

Royal Danish Embassy

Intecsea Sdn Bhd

Ranhill Worley Parsons Sdn Bhd


81.8%

4.0%

3.8%

2.7%

2.2%2.2% 3.3%

Consultancy (oil & gas) Embassy Accounting

Glove manufacturer Consultancy (Finance) Consultancy (Rubber)

Others

OFFICE PROPERTIES SUNWAY TOWER (Cont’d)


Note: Based on gross rental income for the month of March 20151 The percentage will drop to 77% in 4QFY2015 when Ranhill surrenders another 37,719sq.ft. in end May 2015.2 Ranhill’s contribution will drop to approximately 69% in 4QFY2015 as per explanation in note 1.

42

1

2


14.4% 15.7%0%

10%

20%

30%

40%

50%

60%

70%

FY2016 FY2017


98.7%

85.2%

78.0%

74.2%

60.8%

73.9%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Jun-11 Jun-12 Jun-13 Jun-14 YTD3Q15

YTD3Q14


OFFICE PROPERTIES SUNWAY PUTRA TOWER

43


1

1 The anchor tenant, Suruhanjaya Koperasi Malaysia has moved out as per explanation in the previous quarter and this has contributed to

the lower occupancy shown above (YTD3Q15:60.8% vs YTD3Q14:73.9%). The asset manager is actively seeking for replacement

tenants. This provides an opportunity to further diversify tenancy mix to reduce tenant concentration risk and to seek more private sector

tenants in line with the manager’s strategy. Notwithstanding this, the Manager’s priority is to fill the vacancy.


1.8%

1.9%

1.9%

1.9%

4.5%

11.6%

12.3%

12.5%

51.6%

100.0%

0% 20% 40% 60% 80% 100%

Yayasan Ihsan Rakyat

PKB Business Sdn Bhd

C&I Coporate Advisory Sdn Bhd

MasterCare Business Maangement

Chini Enterprise Sdn Bhd

Suruhanjaya Syarikat Malaysia

Jabatan Pengairan & Saliran Malaysia (JPS)

Jabatan Perdana Menteri (I.C.U)

Kementerian Perdagangan Dalam Negeri Koperasi DanKepenggunaan Malaysia

Total Top Tenants

88.0%

4.5%

3.8%

1.9%1.8%

Government Agency Medical

Communication Marketing

Leisure & Entertainment

OFFICE PROPERTIES SUNWAY PUTRA TOWER (Cont’d)

Tenant mix Top tenants


44


27.7% 33.1% 25.8%3.1%

0%

10%

20%

30%

40%

50%

60%

70%

FY2015 FY2016 FY2017 Monthlytenancy


88.7%86.9%

80.9%

85.1%

89.8% 89.8%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Jun-11 Jun-12 Jun-13 Jun-14 YTD3Q15

YTD3Q14


OFFICE PROPERTIES WISMA SUNWAY

45


Note: The contribution from Wisma Sunway commences on 23 March 2015. The information for YTD3Q shown above is for the

month of March 2015 only following the completion of acquisition of the office on 23 March 2015. The historical information

(FY2011 to FY2014) are provided by the vendor, Sunway Berhad.


1.2%

2.7%

4.1%

5.3%

5.9%

15.4%

30.8%

34.6%

100.0%

0% 20% 40% 60% 80% 100%

Yayasan Pengaman Malaysia

MST Golf Sdn Bhd

Suruhanjaya Komunikasi & Multimedia Malaysia

Pejabat Tindakan Pelancongan Negeri Selangor

Yayasan Penyelidikan Transformasi

Lembaga Hasil Dalam Negeri

Jabatan Alam Sekitar

Jabatan Kesihatan Negeri Selangor

Total Top Tenants

OFFICE PROPERTIES WISMA SUNWAY (Cont’d)

Tenant mix Top tenants


46

97.3%

2.7%

Government Agency Others


5. Market Outlook

47


General Outlook

1 Based on International Monetary Fund’s forecast as at 17 April 2015

48

o The International Monetary Fund (“IMF”) has revised global growth from 3.8% to 3.5%1

for CY2015 and 3.8%1 in CY2016 supported by rebound in the advanced economies.

Meanwhile, economic growth in the emerging nations are expected to soften led by

China and net oil and commodity exporters.

o The Malaysian economy accelerated to 6.0% in CY2014 (CY2013: 4.7%), driven

primarily by the continued strength of domestic demand and supported by an

improvement in external trades. Net exports turned positive following seven years of

negative contribution as Malaysia benefitted from the recovery in the advanced

economies and the sustained demand from the regional economies.

o According to Bank Negara Malaysia (“BNM”), the Malaysian economy is projected to

register a steady growth of 4.5% - 5.5% in CY2015 (CY2014: 6.0%), cushioned by a

well- diversified economy, favourable employment market conditions, matured financial

markets, strong banking system, ample reserves and a flexible currency.

o Household spending is expected to be affected by the implementation of the Goods and

Services Tax (“GST”) in April and lower earnings in commodity-related sectors, its impact

will, however, be partially offset by Government measures to assist targeted groups and

the additional disposable incomes from lower fuel prices.


General Outlook

2 Based on Bloomberg’s compilation of economists’ forecast

49

o BNM has lowered its inflation expectations to average between 2% - 3% in CY2015

(CY2014: 3.2%), from 2.5% - 3.5% previously despite implementation of GST. The lower

expectation was due to already low oil prices and lower utility costs.

o Monetary policy in CY2015 will focus on ensuring steady growth of the Malaysian

economy amid contained risks to inflation. BNM has signaled that the central bank will

monitor the nation’s growth direction and interest rate direction will remain

accommodative for CY2015. Based on consensus forecast2 as at 13 April 2015,

Overnight Policy Rate (“OPR”) is projected to remain unchanged at 3.25% in CY2015.

o The Manager expects modest growth in distribution per unit (“DPU”) in FY2015 with the

re-opening of Sunway Putra Mall in May 2015.

o The Manager is committed to distribute 100% of its distributable net income for FY2015.


Retail

50

o A recent report by Retail Group Malaysia (“RGM”) revealed that retail sales for 4Q

CY2014 contracted by 0.8% y-o-y compared with 3.9% growth achieved a year ago. For

the full year CY2014, retail sales grew by 3.4%, the lowest since 2009, despite the

presence of more brands in the market. RGM has revised downwards CY2015 retail sales

growth forecast from 5.5% to 4.9% amidst weakening consumer sentiment following

introduction of GST. The Manager believes that this remains an aggressive target.

o The incoming stream of new retail malls in the Klang Valley may potentially lead to higher

vacancy rates. Under the competitive operating environment, it is the survival of the fittest

where leading regional malls possess the competitive advantage in attracting both

international retailers and domestic retailers as well as supported by experienced retail

mall management team, robust promotional activities and distinctive tenancy mix.

o Average occupancy rate in Sunway Pyramid Shopping Mall improved marginally to 98.1%

for year-to-date (“YTD”) 3Q2015, from 97.8% during the same period in the preceding

year. A total of 338,826 sq.ft. of net lettable area (“NLA”) was renewed for YTD 3Q2015 at

double-digit rental reversion rate over the three-year tenancy term.

o Sunway Carnival Shopping Mall recorded higher average occupancy rate of 97.7% for

YTD 3Q2015 compared to 92.4% for YTD 3Q2014 due to tenancy commencement of a

tenant occupying approximately 44,000 sq.ft. in July 2014. A total of 41,564 sq.ft. of NLA

was renewed at a double-digit rental reversion rate over the three-year tenancy term.


Retail (Cont’d)

51

o The refurbishment of Sunway Putra Mall was completed in February 2015. As at 31

March 2015, total tenancy secured was above 75% of NLA. The mall is scheduled for

re-opening in May 2015.

o Notwithstanding the competitive operating environment, The Manager expects the

retail assets to register healthy growth in FY2015 supported by Sunway Pyramid

Shopping Mall and Sunway Carnival Shopping Mall.

o Going forward, the Manager is cautious on retail sentiment in the short term following

the recent implementation of GST. Over the medium to long term, retail sentiment is

expected to strengthen supported by favourable employment market conditions and

business confidence.


Hotel

52

o Tourist arrivals for CY2014 recorded a single-digit growth of 6.7% to 27.4 million tourists,

primarily contributed by ASEAN and Middle East nations. This was below The Tourism and

Culture Minister’s target of 28.0 million for CY2014.

o Moving into 2015, weakening of Malaysian Ringgit is favourable in boosting tourism

activities in the country. Despite the favourable foreign exchange factor, there may be

dilution in market share for existing hotels in view of opening of new hotels in the country

and a stream of new supply scheduled for opening in 2015 and 2016.

o Sunway Resort Hotel & Spa registered a lower average occupancy rate of 75.6% in

3Q2015 compared to 82.1% during the same quarter in the preceding year. The lower

average occupancy rate was attributable to softer business and consumer sentiment ahead

of introduction of GST. In addition, the hotel enjoyed higher average occupancy rate in the

preceding year due to one-off MICE businesses and supported by aggressive tactical

promotional activities.

o Similar to the main hotel, Pyramid Tower Hotel experienced a decline in average occupancy

rate from 82.8% in 3Q2014 to 73.8% in 3Q2015 for the same explanation given above.

Rental contribution was lower due to closure of F&B outlets in both hotels and higher room

operating expenses to enhance guests service level.


Hotel (Cont’d)

53

o The average occupancy rate for Sunway Putra Hotel continued to be adversely

affected by the ongoing refurbishment at the hotel and adjoining Sunway Putra Mall.

The average occupancy rate declined to 22.3% in 3Q2015 compared to 36.1% in

3Q2014 on the back of closure of some of the key hotel facilities for refurbishment. To

date, the ballroom, coffee house and 307 rooms (total number of rooms: 618 rooms)

have been refurbished. Business performance of Sunway Putra Hotel is expected to

improve gradually upon progressive completion of the full hotel refurbishment in 4Q

CY2015.

o In the mainland of Penang, Sunway Hotel Seberang Jaya registered lower average

occupancy rate of 55.2% in 3Q2015 compared to 63.2% in 3Q2014 on the back of

exceptionally soft market demand during the quarter and competition from newly

opened hotels. This was however mitigated by higher average daily rate post

completion of the refurbishment of the hotel in 4Q2013.

o Over on the island, the acquisition of Sunway Hotel Georgetown was completed on 28

January 2015 and the average occupancy rate for 3Q2015 stood at 67.4%. The

information for 3Q2015 is for the month of February 2015 and March 2015 following

the completion of the acquisition of the hotel on 28 January 2015.

o The Manager expects income contribution for the hospitality sector to be maintained

in FY2015 as mentioned above.


Office

54

o Klang Valley is expected to have a cumulative supply of approximately 100 million sq.ft.

by end of CY2015, with an estimated 4.8 million sq.ft. of office space slated for

completion this year.

o The widening gap between supply and demand will continue to exert tremendous

pressures on rental and occupancy rates as developers and landlords compete to secure

and retain tenants for both the existing office buildings and new office buildings. The

tenants’ market phenomenon is expected to persist until an equilibrium is achieved.

o Average occupancy rate in Menara Sunway dipped marginally from 98.8% for YTD

3Q2014 to 97.4% for YTD 3Q2015 due to non-renewal of a tenant in July 2014.

o Following the progressive termination of an anchor tenant, the average occupancy rate

for Sunway Tower stood at 67.6% for YTD 3Q2015 (YTD 3Q2014: 85.0%). The average

occupancy rate is expected to decline to approximately 50% in 4Q 2015 on the back of

an additional 37,719 sq. ft. to be surrendered in end-May 2015 (deferred from March

2015 as reported in the previous quarter). The asset manager is actively seeking

prospective tenants to fill the vacancy.


Office (Cont’d)

55

o Pursuant to the departure of an anchor tenant in December 2014, average occupancy

rate at Sunway Putra Tower stood at 60.8% for YTD 3Q2015 compared to 73.9% in the

corresponding period in the preceding year. This provides an opportunity to further

diversify tenancy mix to reduce tenant concentration risk and to seek more private

sector tenants in line with the Manager’s strategy. Notwithstanding this, the Manager’s

priority is to fill the vacancy.

o The acquisition of Wisma Sunway was completed on 23 March 2015 and the average

occupancy rate stood at 89.8% for YTD 3Q2015. The information for the average

occupancy rate is for the month of March 2015 following the completion of the

acquisition of the office on 23 March 2015.

o Despite the setback and lower income contribution from the office segment , the

Manager does not expect a material adverse impact on the DPU for FY2015.


6. Investor Relations

56


Price(as at 8/7/2010)

: RM0.90

Closing Price(as at 31/3/2015)

: RM1.57

Highest Price : RM1.70

Lowest Price : RM0.88

Daily Average Volume : 1.80mil units

% Change in Unit Price

: 74.4%

% Change in FBM KLCI

: 39.1%

% Change in

TR/GPR/APREA

Composite REIT Index Malaysia

: 88.6%

Performance Statistics*

Source: Bloomberg Source: Bloomberg

*Computed for the period 8 July 2010 – 31 March 2015

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Jul-

10

Oct

-10

Jan

-11

Ap

r-1

1

Jul-

11

Oct

-11

Jan

-12

Ap

r-1

2

Jul-

12

Oct

-12

Jan

-13

Ap

r-1

3

Jul-

13

Oct

-13

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

Jan

-15

TR/GPR/APREA

Composite REIT Index

Malaysia

88.6%

Sunway

REIT

74.4%

FBM

KLCI

39.1%

Unit Price Performance of Sunway REIT versus

Benchmarks (8 July 2010 – 31 March 2015)

Ma

r-1

5

Unit Price Performance (IPO to 31 March 2015)


Unit Price Performance (YTD 3Q2015)

Performance Statistics*

Price(as at 30/6/2014)

: RM1.44

Closing Price(as at 31/3/2015)

: RM1.57

Highest Price : RM1.68

Lowest Price : RM1.39

Daily Average Volume : 1.89mil units

% Change in Unit Price

: 9.0%

% Change in FBM KLCI

: -2.8%

% Change in

TR/GPR/APREA

Composite REIT Index

Malaysia

: 11.6%

Source: Bloomberg Source: Bloomberg

*Computed for the period 30 June 2014 – 31 March 2015

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Jun

-14

Jul-

14

Au

g-14

Sep

-14

Oct

-14

No

v-1

4

Dec

-14

Jan

-15

Feb

-15

Mar

-15

Sunway

REIT

9.0%

TR/GPR/APREA Composite

REIT Index Malaysia

11.6%

FBM

KLCI

-2.8%

Unit Price Performance of Sunway REIT versus

Benchmarks (30 June 2014 – 31 March 2015)


Unitholders’ Composition (as at 31 March 2015)

o Total number of unitholders has increased by 2.3% to 8,779 as at 31 March 2015.

o Retail participation increased from 11.2% as at 31 December 2014 to 15.0% as at 31 March 2015 due to

classification.

o Foreign unitholdings was largely unchanged at 19.4% as at 31 March 2015 (December 2014: 19.5%)

o Sunway Berhad’s unitholdings increased by 0.5% to 36.2% as at 31 March 2015

Domestic 80.6%

Foreign19.4%

Sunway Berhad36.2%

Institutions48.8%

Retail15.0%


Comparative Yields for Various Assets

Note:

1. Distribution yield based on consensus DPU forecast of 8.7 sen (Source: Bloomberg)

2. Information as at 31 March 2015 (Source: Bloomberg)

3. 12-Month Fixed Deposit rates offered by commercial banks as at 28 February 2015 (Source: Bank Negara Malaysia)

4. Dividend yield declared by Employees Provident Funds for the year 2014 (Source: Employees Provident Fund)

5. As at 31 March 2015 (Source: Bank Negara Malaysia)

5.54% 1

6.89% 2

3.87% 2

3.31% 3

6.75% 4

3.25% 5

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Sunway REIT M-REIT 10-Year MGS Fixed Deposit EPF Yield OPR


THANK YOU

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